Finance Committee

Chairperson: Jerry McFadden jmcfadden55@oh.rr.com

Mission: Review the financial statements and budget for accuracy and consistency. Make recommendations to and receive clarification from the Board of Trustees.

Meeting held July 27, 2009.  Next meeting will be scheduled in October.

Topics Discussed:

1. Julie Jaram from Schwartz & Associates, a CPA Firm in Westlake went over the difference between a Review and an Audit of Financial Statements.  She presented a bid for a 2009 Audit which will be presented to the HOA Board.
2. Kristy Slivka from M2 Management Group in Brunswick attended to introduce herself.  She will be the person at M2 who is working on our monthly Accounting and Financial Statements.
3. Financial Statements through June 30, 2009 were discussed, along with the 2009 Budget, and Homeowner Receivables.  The outstanding receivables balance as of July 25, 2009 was $67,622.18.  It was pointed out at the meeting that 24 homeowners on the receivables list (3% of 812 total homeowners) owe approximately 63% of the outstanding balance.  Of the homeowners on the list, liens have been filed against their homes, or they have set up a payment plan with the Association.  The foreclosure process has started on two homes to recover funds owed to the Association. 
4. An independent Reserve Study was completed in April, 2009 by Criterium Liszkay Engineers. This study was done in order for the Board of Trustees to determine what items need reserves and at what amounts.  The study looked for items that would need to be replaced or repaired over the next twenty-five years.  The results of the study were discussed as well as various options for funding the reserves.
5. In addition to the reserves covered in the Reserve Study, the Greenview Trail Street Reserve was also discussed.  Since Greenview Trail is considered a "Private Street" that is owned by the Association, and not a "City Street", the Association will eventually have to pay to have the Street repaired or replaced.  This will probably not need to be done for twenty-five to thirty years.  The Covenants state that the $300 "Initiation Fee" paid by a homeowner when they purchase a home on Greenview Trail be put into the street reserve fund, as well as $75 of each Greenview Trail Homeowners annual dues.  This reserve should have a balance of $21,600 at June 30, 2009.  $11,925 of this amount pertains to 2007 and prior and was funded by the Developer, since those funds disappeared with Multivest.  We are currently looking into purchasing a Bank CD for the Greenview Trail Reserves so it will earn interest.